Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/113072
Authors: 
Tonzer, Lena
Buch, Claudia M.
Buchholz, Manuel
Year of Publication: 
2015
Series/Report no.: 
Beiträge zur Jahrestagung des Vereins für Socialpolitik 2015: Ökonomische Entwicklung - Theorie und Politik - Session: Credit and Liquidity Risks in Financially Integrated Markets: Policy Implications and Real Effects A02-V3
Abstract: 
We develop a new measure of uncertainty derived from bank-level data. We apply the measure of firm-level uncertainty developed by Bloom and others (2012) to banking. Uncertainty is measured as the cross-sectional dispersion of shocks to banking-sector specific variables. We then analyze how uncertainty in banking affects lending by domestic and foreign-owned banks. We find that, first, higher uncertainty in banking has negative effects on bank lending. Second, the effect is heterogeneous across banks: Lending by banks which are better capitalized and have higher liquidity buffers tends to be affected less. Third, foreign-owned banks do not react differently to uncertainty in the host country compared to domestically-owned banks.
JEL: 
G01
F34
G21
Document Type: 
Conference Paper

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